Comparative financial statement data of Garfield, Inc. follow:

1. Market price of Garfield's common stock: $69.36 at December 31, 2018, and $38.04 at December 31, 2017.
2. Common shares outstanding: 14,000 on December 31, 2018 and 12,000 on December 31, 2017 and 2016.
3. All sales are on credit.
Requirements
1. Compute the following ratios for 2018 and 2017:
a. Current ratio
b. Cash ratio
c. Times-interest-earned ratio
d. Inventory turnover
e. Gross profit percentage
f. Debt to equity ratio
g. Rate of return on common stockholders' equity
h. Earnings per share of common stock
i. Price/earnings ratio
2. Decide
(a) Whether Garfield's ability to pay debts and to sell inventory improved or deteriorated during 2018
(b) Whether the investment attractiveness of its common stock appears to have increased or decreased.

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GARFIELD, INC. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 $ 461,000 $ 424,000 Net Sales Revenue Cost of Goods Sold 241,000 211,000 Gross Profit 213,000 220,000 137,000 Operating Expenses 135,000 Income from Operations 83,000 78,000 Interest Expense 9,000 13,000 Income Before Income Tax 74,000 65,000 Income Tax Expense 18,000 24,000 $ 56,000 $ 41,000 Net Income